A new report shows that seventy-nine percent of net job creation since June 2010 has taken place in industries where the average wage is less than £7.95 an hour. This perpetuates in-work poverty...

Just over one in five new employee jobs created since June 2010 have been in the highly paid computer programming, consultancy and related services industries, where the average hourly wage is £18.40. In the middle paid industries, which account for nearly three quarters of the UK workforce and where the average is between £7.95 and £17.40 per hour, there has been no net job creation since June 2010.

While there has been much recent discussion on the extent to which demand deficiencies in the labour market are leading to high under-employment and increasing rates of atypical and insecure work, there has been less focus on how jobs growth has varied across different industries. Our analysis focuses on these changes, and shows that the vast majority of jobs growth that we have seen has been in low-paid industries.

The shift towards a labour market which is characterised by increasing levels of low wage jobs is worrying, and risks damaging our economic prospects in the long run. While job creation may be better than unemployment this still leaves households struggling with little money to spend in order to aid the recovery.

The report also looks at change over the longer-term in industries we have defined as low paid, middle paid and high paid since 2005. Access the report here.

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